Why SeaWorld Stock United Parks & Resorts Dropped Today

United Parks & Resorts (NYSE: PRKS) stock, which operates both the Busch Gardens and SeaWorld brands of amusement park, endured the wrong sort of roller-coaster ride on Thursday, plunging 22.5% through 1 p.m. ET -- and not going back up for another run.

Analysts forecast United Parks would earn $2.37 per share on sales of $538.2 million, but the stock missed on both counts. Earnings were only $1.61 per share, and sales just $511.9 million.

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United Parks Q3 earnings

United Parks' sales declined 6% on a 3% decline in attendance at its theme parks, but earnings fell much faster -- down 25% year over year.

CEO Marc Swanson said he was "obviously not happy with the results we delivered in the quarter," which he blamed on "an unfavorable calendar shift, poor weather during peak holiday periods, a decline in international visitation" -- and also on "less than optimal execution." He argued that but for the weather, the calendar, and the dearth of international visitors, attendance at the parks would have been flat in Q3.

Swanson also insisted the company can do better, and in anticipation of that, noted United Parks plans to buy back $500 million worth of stock, which should help to concentrate profits among fewer shares outstanding when the business improves.

Is United Parks stock a sell?

Investors in contrast are most decidedly not buying today. But perhaps they should be.

After all, at $2 billion in market cap and with $181 million in trailing earnings, United Parks sells for an undemanding price-to-earnings ratio of just 11. And analysts anticipate a turnaround to about 10% earnings growth as early as next year.

If they're right about that, United Parks could be a good candidate for a turnaround stock.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends United Parks & Resorts. The Motley Fool has a disclosure policy.